Rocket Fuel Newsletter – 12/16/2024
The end of an Eras Tour – Taylor Swift’s Eras Tour, which became a global sensation, ended on December 8 in Vancouver.
The tour first started in March 2023, and since then, Taylor Swift has performed 149 shows in 21 countries and is credited for providing an economic boost to the cities she visited.
Here are 25 stats about the record-breaking tour.
This week’s edition has an update on the most recent inflation data, an inside look into the minds of small business owners and a dive into BRICS.
Fuel up! 🚀
Inflation rises in line with expectations
The November Consumer Price Index (CPI) showed a 0.3% increase compared to the previous month, aligning with market forecasts. On an annual basis, prices climbed 2.7% from November last year. With the Federal Reserve meeting scheduled for next week, the market is largely anticipating another 25-basis point rate cut.
Small business optimism hits 3-year high
The NFIB Small Business Optimism Index rose eight points in November, reaching its highest level since June 2021. Nine of the 10 index components showed increases, while one remained unchanged. The increase reflects growing confidence among small business owners, with some attributing the surge to optimism about potential shifts in economic policy following the recent election.
U.S. jobs rebounds in November, but it may be temporary
In November, total nonfarm payroll employment rose by 227,000 jobs while the unemployment rate came in at 4.2%, slightly higher month-over-month. This number was aided by the end of a brutal hurricane season and the end of a significant labor strike at Boeing factories.
BRICS Impact On The Global Economy
Back in 2001, economist Jim O’Neill published a research paper discussing the economic growth happening in Brazil, Russia, India, and China (BRIC) – creating a more diverse global economic stage. BRICS was officially established in 2009 with the addition of South Africa and has since grown to include the United Arab Emirates, Ethiopia, Egypt and Iran. The group meets annually and aims to challenge the Western-dominated global economy and reduce the world’s reliance on the U.S. dollar.
This growing group is comprised of a very large population, as well as a growing market share of the world’s GDP. With a unified mission and a well-organized plan, they certainly have the power to affect change on the global economy.
One of the largest initiatives set forth by BRICS is the creation of New Development Bank (NDB) and Contingent Reserve Arrangement (CRA) as alternatives to the World Bank and International Monetary Fund (IMF). The NDB is intended to be a more flexible alternative to the World Bank, offering loans and other products to finance infrastructure and development projects in member countries. While these alternatives do give BRICS members additional options, the resources they offer are significantly smaller than the resources available through the World Bank. Another common criticism of the NDB is that while it was intended to provide more flexibility, it has evolved to retain many of the rigid constraints of the World Bank.
BRICS also aims to weaken the dominance of the U.S. dollar by using their own currencies for trading. The idea of a new BRICS currency has also been proposed, as well as a new cryptocurrency. These ideas are quite ambitious, given the prevalence of the U.S. dollar in international trade. A new BRICS currency would require a concerted effort among several willful countries. For instance, this year’s BRICS presidency rotation will be held by Russia, who has an ongoing conflict with Ukraine. Not all BRICS members are in support of Russia within this conflict and are not as willing to openly reject Western support. However, if a BRICS currency ever comes to fruition, it could undermine the strength of the U.S. dollar and weaken the U.S. economy.
There does not appear to be any immediate concrete plans coming out of the BRICS organization, other than the general idea of creating a more diverse global economy. Given the enormous population and GDP of BRICS members, it certainly has the numbers to make waves. However, what remains to be seen is BRICS’ ability to work cohesively together for change.
Start your 2025 strong: Join us at these must-attend tradeshows!
Connect with industry leaders and elevate your business at our upcoming events. Don’t miss exclusive keynotes from Rocket ProSM TPO’s Mike Fawaz and Don Chiesa at the New England Mortgage Expo!
Use code ROCKETFREE for free registration at these shows:
- January 15 – 17: New England Mortgage Expo - Mohegan Sun, CT
- February 11: California Mortgage Expo – Palm Springs, CA
- February 16 – 18: Conference for Community Bankers - Phoenix, AZ
- February 18: Texas Mortgage Roundup – Austin, TX
- February 25: California Mortgage Expo – Sacramento, CA
Note: Code ROCKETFREE is not eligible for the February 16-18: Conference for Community Bankers – Phoenix, AZ.
Plan ahead, secure your spot and gain insights to grow your business.
Congratulations to all of our solvers last week – just about half finished in less than 2 minutes, led by our top three solvers at 27, 34 and 49 seconds.
This week’s puzzle gets 2 Rockets out of 5.
Good luck!